The Sudden Explosion of Cheap and Readily Available Mortgages Encouraged

question 45

Multiple Choice

The sudden explosion of cheap and readily available mortgages encouraged people to:

• A) buy bigger and better homes.
• B) become less risk-averse.
• C) become more risk-averse.
• D) securitize their investments.

---

Definitions:

Postman

A term traditionally used for a person who delivers mail and packages as part of a national postal service.

Loftus

Refers to Elizabeth Loftus, a cognitive psychologist known for her work on the malleability of human memory and the misinformation effect.

Trial Witnesses

Individuals who provide testimony in court cases based on what they have seen, heard, or have expert knowledge about.

Misinformation

Incorrect or misleading information that can create false beliefs or memories.